In years past, the most obvious answer for small
business funding was a bank loan. But as the saying goes, a banker
is someone who lends you an umbrella when it's not raining.
Luckily, today's startups have a lot more options in finding
first-round financing or even pre-first round.

In an ideal world, the shortest timeframe for securing financing
would be three to six months before you need it. Have a shorter
window? Read on, dear debtor, and be amazed at the wealth of early
financing options that are yours for the taking.

Check out the three-year-old ACE-Net (see Resources),
the U.S. Small Business Administration's Internet-based listing
service for securities offerings of small, growing companies.
Accredited investors view listings anonymously, and the government
makes sure that entrepreneurs are meeting all the legal requirements
of federal and state securities regulators: a win-win situation all
around.

Of course, the private sector has its many counterparts. One of
the first of its kind was DataMerge, Inc. (see Resources),
which has offered a national database of alternative lenders and
equity investors since 1989. It's an easy way for someone in
Cincinnati to find money in Atlanta. Detailed profiles of investment
criteria accompany hundreds of listings, and active financiers reach
into the thousands.

Don't skip the promising MoneyZone.com (see Resources),
launched just this year. They offer a variety of debt and equity
financing options to apply for online. You can also post your
business plan for browsing investors. It could be interesting: in
their first month of operation, they claim to have processed a
billion dollars' worth of financing.

Garage.com (see Resources)
is a also a great site for companies looking for seed-level
financing. Investors are listed in the section of the site called
Heaven, where they peruse pre-screened entrepreneurs -- investment
opportunities -- that match their interests. If no angel comes
knocking on your door, at least you can get some excellent advice
here.

More of these services are showing up online every day -- so
unless you are dealing with a quantity that is well known to you, be
sure to check them out, and call references before you send them
anything or post any information about your company.

By showing their wares at a local entrepreneur council event in
North Carolina, Scot Wingo of AuctionRover attracted the interest of
a visiting VC group. At the time, his company was only three months
old. "We were funding it ourselves," he says, "Once they talked to
us, it was pretty exciting." Two weeks and $3 million in seed later,
they got a big office space "and started hiring like crazy."

Another take on this idea is to borrow someone else's network by
signing up for help by the Service Corps of Retired Executives
Association (SCORE). Sponsored by the SBA, it has nearly 400
locations across the country so there should be one close to you.
They've assisted almost four million people since starting in
1964.

Total SBIR funding is expected to exceed $1.2 billion in fiscal
year 2000. The program funds U.S.-owned firms with 500 employees or
less to conduct cutting-edge, innovative R&D that addresses the
government's mission objectives while also promising commercial
payoffs in new products. Ten federal departments from DOT to NASA
take part in SBIR, so you can imagine the range of technology
projects they solicit.

Projects are high-risk and typically at the earliest stages of
development, before companies can attract private capital. Terms are
good and you don't have to worry about selling copyrights or patents
either. Each project may be awarded up to $850,000 over a 2-1/2 year
period.